Betfair odds-on for market flotation

MANCHESTER United 's official betting partner Betfair is considering a potential £1.5bn flotation amid discussions over the future of the firm, according to reports. Founders Bertie Black and Ed Wray are said to have agreed for meetings with banking advisers over the possibility of a flotation as the gaming giant looks to raise capital in a bid to lead the consolidation of the global gambling industry.

Betfair launched its new partnership with Manchester United at Old Trafford earlier this month

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MANCHESTER United 's official betting partner Betfair is considering a potential £1.5bn flotation amid discussions over the future of the firm, according to reports.

Founders Bertie Black and Ed Wray are said to have agreed for meetings with banking advisers over the possibility of a flotation as the gaming giant looks to raise capital in a bid to lead the consolidation of the global gambling industry.

If the listing went ahead, it would be the UK's first major flotation since the onset of the financial crisis.

The three-year United deal allows Betfair to use the club logo and it has also launched a new website featuring content from Manchester United players.

The group is thought to have the move on the table despite saying earlier this month that it was not heading in that direction, after its founders reconsidered their position in the face of strengthening stock markets.

Mr Black and Mr Wray are understood to own a combined 25 per cent stake in the firm, and a listing could land the pair with a potential payout worth hundreds of millions of pounds, it is reported.

It is believed they are each worth about £190m but could scoop a further £350m or more between them if they were to sell their stakes in the company.

Other Betfair shareholders include Japanese bank Softbank, which is thought to be keen to get a return on its 23 per cent holding in the company.

The report said Softbank bought its stake in a £355m deal in April 2006, valuing the firm at £1.5bn.

The report added that while a flotation was the most likely way for Betfair to raise capital, it could also choose to tap shareholders for further funding.